Ethereum Under Pressure: Profitable Addresses Soar to Historic High

Ethereum's profitability metrics hit unprecedented levels—just as the network faces mounting pressure. More addresses than ever are sitting on gains, creating a complex dynamic for the world's second-largest cryptocurrency.

The Profit Paradox

While paper profits pile up, traders face a critical decision: hold for further gains or cash out at these elevated levels. This surge in profitable addresses typically signals both strong investor confidence and potential selling pressure lurking beneath the surface.

Market Mechanics at Play

Ethereum's ecosystem continues evolving amid these market conditions. The network's transition to proof-of-stake and ongoing upgrades add layers of complexity to investor calculus—because nothing says 'decentralized future' like watching your portfolio swing with traditional market sentiment.

As profitable addresses peak, Ethereum tests both technical resilience and investor conviction. The real question isn't who's profiting—but who's smart enough to keep those profits when the music eventually stops.

Ethereum Whales Begin Profit-Taking Amid Historic Profitability Levels 

According to Glassnode data, the number of ETH addresses in profit reached an all-time high of over 155 million in September.

“ETH addresses in profit hit highest in history! Over 155 million ETH wallets are now in profit, marking the fastest rate ever,” Coin Bureau noted.

This record highlights the asset’s long-term strength and broad investor participation. Yet, it also raises the risk of short-term volatility as elevated profitability often precedes sell-offs.

On-chain activity appears to reflect this risk. Lookonchain, a blockchain analytics firm, reported that Trend Research transferred 16,800 ETH, valued at approximately $72.88 million, to Binance.

This MOVE has fueled speculation of a shift in outlook, with some viewing it as preparation for sales amid secured profits. 

“Is Trend Research About to Start Selling ETH Again? The ETH just transferred out is part of the 43,377 ETH they purchased in early September. After buying in early September, they held a total of 152,000 ETH, with an average cost of about $2,869,” analyst EmberCN added.

Profit-taking was also seen among other whales. Address (0xB04) sold 3,000 ETH for $13.14 million. Despite the sale, the whale still holds 9,804.32 ETH, worth around $42.57 million.

Derivatives markets reinforce the bearish sentiment. According to an analyst, ETH traders on Binance have turned sharply negative. The Taker Buy/Sell ratio dropped below 0.87 on September 19.

“This marks only the third time this year it has fallen so low. Back in January and February, the ratio reached as low as 0.85, coinciding with a bearish trend that pushed ETH below $1 500. The 7-day average currently stands at 0.93, marking the lowest level of the year,” Darkfost noted.

Why ETH’s Price Could Fall Below $4,000

Amid these signals of growing pressure, ETH’s price action reflects the strain. BeInCrypto Markets data showed that the altcoin has dropped 10.5% over the past week. 

The price decline followed the Federal Reserve’s recent 25-basis-point rate cut, yet ETH remains below recent peaks, with its rally toward $5,000 stalling. At the time of writing, the second-largest cryptocurrency was trading at $4,153, down 7.37% over the past day.

Meanwhile, some market analysts believe that ETH could drop further, potentially falling below the $4,000 price level.

“ETH is likely to hit $3,900 to $4,000 ranges again. It’s missing one nice wave. I don’t think we’ll hit $6,000 this cycle, though,” trader Philakone wrote.

$ETH

⚠️ Currently peaking out the bottom of the triangle ⚠️

Wait for daily close. If it closes inside there's a chance it bounces and consolidates further.

Close below and likely to continue downside and we can find the measured target https://t.co/cYtjtxu6dj pic.twitter.com/E7fX2KCti3

Analyst Ted Pilows also highlighted that ETH still has an unfilled CME gap in the $3,000–$3,500 range.

“Most CME gaps are filled before a big move, so a correction could happen.” Pillows added

Despite these headwinds, long-term Optimism persists. In another post, the analyst stated that Coinbase’s stock chart, often a leading indicator, points to a potential correction followed by new highs, which ETH may mirror.

“Global M2 supply is now projecting $18,000-$20,000 ETH by cycle top. Even if $ETH pulls half of that, it’ll trade above $10,000. I’m still long-term bullish on ethereum and think that a sweep of the $4,000 liquidity zone could happen before reversal,” Pillows forecasted. 

$ETH is still consolidating above its $4K resistance level.

Some people are turning bearish on ETH and calling for $3K now.

They missed the first rally and they'll miss the next rally too.

IMO, a dip towards $3.8K-$4K followed by a new ATH is highly likely. pic.twitter.com/yttIqoaONy

Thus, while short-term risks loom, Ethereum’s trajectory supports an overall bullish trajectory in the long run.